IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v41y2013icp31-50.html
   My bibliography  Save this article

How Did the Great Recession Affect Different Types of Workers? Evidence from 17 Middle-Income Countries

Author

Listed:
  • Cho, Yoonyoung
  • Newhouse, David

Abstract

This paper examines how different types of workers in middle-income countries fared during the immediate aftermath of the great recession. Youth suffered extraordinary increases in unemployment and declines in wage employment. Employment to population ratios also plummeted for men, primarily due to their higher initial employment rates. Percentage employment declines within sector were gender-neutral, and there is little indication of strong added worker effects. Traditionally disadvantaged groups such as less educated and female workers were not necessarily most affected during the crisis, underscoring the importance of implementing targeted mitigation measures that focus on displaced youth and wage employees.

Suggested Citation

  • Cho, Yoonyoung & Newhouse, David, 2013. "How Did the Great Recession Affect Different Types of Workers? Evidence from 17 Middle-Income Countries," World Development, Elsevier, vol. 41(C), pages 31-50.
    • Handle: RePEc:eee:wdevel:v:41:y:2013:i:c:p:31-50
    DOI: 10.1016/j.worlddev.2012.06.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X12001623
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Duncan Thomas & James P. Smith & Kathleen Beegle & Graciela Teruel & Elizabeth Frankenberg, 2002. "Wages, employment and economic shocks: Evidence from Indonesia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 161-193.
    2. Ana Corbacho & Mercedes Garcia-Escribano & Gabriela Inchauste, 2007. "Argentina: Macroeconomic Crisis and Household Vulnerability ," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 92-106, February.
    3. Gibbons, Robert & Katz, Lawrence F, 1991. "Layoffs and Lemons," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 351-380, October.
    4. Michael W. L. Elsby & Bart Hobijn & Aysegul Sahin, 2010. "The Labor Market in the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 41(1 (Spring), pages 1-69.
    5. Loayza, Norman V. & Raddatz, Claudio, 2010. "The composition of growth matters for poverty alleviation," Journal of Development Economics, Elsevier, vol. 93(1), pages 137-151, September.
    6. Bell, David & Blanchflower, David, 2010. "Youth Unemployment: Deja Vu?," Stirling Economics Discussion Papers 2010-04, University of Stirling, Division of Economics.
    7. Gary Fields & Paul Cichello & Samuel Freije & Marta Menendez & David Newhouse, 2003. "Household income dynamics: a four-country story," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 30-54.
    8. Singh, Ajit & Zammit, Ann, 2000. "International Capital Flows: Identifying the Gender Dimension," World Development, Elsevier, vol. 28(7), pages 1249-1268, July.
    9. Giles, John & Park, Albert & Cai, Fang & Du, Yang, 2012. "Weathering a storm : survey-based perspectives on employment in China in the aftermath of the global financial crisis," Policy Research Working Paper Series 5984, The World Bank.
    10. Marcello Signorelli & Misbah Choudhry & Enrico Marelli, 2012. "The Impact of Financial Crises on Female Labour," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 24(3), pages 413-433, July.
    11. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    12. Howes, Candace & Singh, Ajit, 1995. "Long-term trends in the World economy: The gender dimension," World Development, Elsevier, vol. 23(11), pages 1895-1911, November.
    13. Stefano Scarpetta & Anne Sonnet & Thomas Manfredi, 2010. "Rising Youth Unemployment During The Crisis: How to Prevent Negative Long-term Consequences on a Generation?," OECD Social, Employment and Migration Working Papers 106, OECD Publishing.
    14. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    15. Khanna, Gaurav & Newhouse, David & Paci, Pierella, 2010. "Fewer Jobs or Smaller Paychecks? Labor Market Impacts of the Recent Crisis in Middle-Income Countries," World Bank - Economic Premise, The World Bank, issue 11, pages 1-4, April.
    16. Adriana Kugler, 1999. "The Impact of Firing Costs on Turnover and Unemployment: Evidence from the Colombian Labour Market Reform," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 389-410, August.
    17. Glewwe, Paul & Hall, Gillette, 1998. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics, Elsevier, vol. 56(1), pages 181-206, June.
    18. Sabarwal, Shwetlena & Sinha, Nistha & Buvinic, Mayra, 2011. "How Do Women Weather Economic Shocks? What We Know," World Bank - Economic Premise, The World Bank, issue 46, pages 1-6, January.
    19. McKenzie, David J, 2004. "Aggregate Shocks and Urban Labor Market Responses: Evidence from Argentina's Financial Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 719-758, July.
    20. Richard Freeman, 2005. "Labour market institutions without blinders: The debate over flexibility and labour market performance," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 129-145.
    21. Jayati Ghosh, 2010. "Financial Crises and the Impact on Women," Development, Palgrave Macmillan;Society for International Deveopment, vol. 53(3), pages 381-385, September.
    22. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    23. Jacob Mincer, 1962. "Labor Force Participation of Married Women: A Study of Labor Supply," NBER Chapters,in: Aspects of Labor Economics, pages 63-105 National Bureau of Economic Research, Inc.
    24. Milan Vodopivec, 2013. "Introducing unemployment insurance to developing countries," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    25. Peter R. Fallon & Robert E. B. Lucas, 2002. "The Impact of Financial Crises on Labor Markets, Household Incomes, and Poverty: A Review of Evidence," World Bank Research Observer, World Bank Group, vol. 17(1), pages 21-45.
    26. Gutierrez, Catalina & Orecchia, Carlo & Paci, Pierella & Serneels, Pieter, 2007. "Does employment generation really matter for poverty reduction ?," Policy Research Working Paper Series 4432, The World Bank.
    27. repec:dau:papers:123456789/1562 is not listed on IDEAS
    28. Leung, Ron & Stampini, Marco & Vencatachellum, Désiré, 2009. "Does Human Capital Protect Workers against Exogenous Shocks? South Africa in the 2008-2009 Crisis," IZA Discussion Papers 4608, Institute for the Study of Labor (IZA).
    29. David N. F. Bell & David G. Blanchflower, 2011. "Young people and the Great Recession," Oxford Review of Economic Policy, Oxford University Press, vol. 27(2), pages 241-267.
    30. Bilal Barakat & Johannes Holler & Klaus Prettner & Julia Schuster, 2010. "The Impact of the Economic Crisis on Labour and Education in Europe," VID Working Papers 1006, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    31. Verick, Sher, 2009. "Who Is Hit Hardest during a Financial Crisis? The Vulnerability of Young Men and Women to Unemployment in an Economic Downturn," IZA Discussion Papers 4359, Institute for the Study of Labor (IZA).
    32. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
    33. Emmanuel Skoufias & Susan Parker, 2006. "Job loss and family adjustments in work and schooling during the Mexican peso crisis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(1), pages 163-181, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brixiova, Zuzana & Kangoye, Thierry, 2016. "Gender Disparities in Employment and Earnings in Sub-Saharan Africa: Evidence from Swaziland," IZA Discussion Papers 10455, Institute for the Study of Labor (IZA).
    2. Tamar Khitarishvili, 2013. "The Economic Crisis of 2008 and the Added Worker Effect in Transition Countries," Economics Working Paper Archive wp_765, Levy Economics Institute.
    3. Rémi Bazillier & Jérôme Hericourt, 2017. "The Circular Relationship Between Inequality, Leverage, And Financial Crises," Journal of Economic Surveys, Wiley Blackwell, vol. 31(2), pages 463-496, April.
    4. Jeroen Horemans & Ive Marx & Brian Nolan, 2016. "Hanging in, but only just: part-time employment and in-work poverty throughout the crisis," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    5. Essers, Dennis, 2013. "South African labour market transitions during the global financial and economic crisis: Micro-level evidence from the NIDS panel and matched QLFS cross-sections," IOB Working Papers 2013.12, Universiteit Antwerpen, Institute of Development Policy (IOB).
    6. repec:hrs:journl:v:ix:y:2017:i:2:p:159-175 is not listed on IDEAS
    7. repec:bla:rdevec:v:21:y:2017:i:4:p:1018-1056 is not listed on IDEAS
    8. Arnstein Aassve & Elena Cottini & Agnese Vitali, 2013. "Youth Vulnerability in Europe during the Great Recession," Working Papers 057, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    9. Tindara Addabbo & Paula Rodríguez-Modroño & Lina Gálvez-Muñoz, 2013. "Gender and the Great Recession: Changes in labour supply in Spain," Department of Economics (DEMB) 0010, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    10. Valeria Cirillo & Marcella Corsi & Carlo D'Ippoliti, 2015. "Gender, class and the crisis," Working Papers CEB 15-026, ULB -- Universite Libre de Bruxelles.
    11. Mona Said, 2015. "Wages and Inequality in the Egyptian Labor Market in an Era of Financial Crisis and Revolution," Working Papers 912, Economic Research Forum, revised May 2015.
    12. repec:bla:labour:v:31:y:2017:i:4:p:337-368 is not listed on IDEAS
    13. Amir S. GOHARDANI & Folke BJÖRK, 2013. "A Conceptual Disaster Risk Reduction Framework For Health And Safety Hazards In The Construction Industry," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 173-192, May.
    14. Khanna, Gaurav & Newhouse, David & Paci, Pierella, 2010. "Fewer Jobs or Smaller Paychecks? Labor Market Impacts of the Recent Crisis in Middle-Income Countries," World Bank - Economic Premise, The World Bank, issue 11, pages 1-4, April.

    More about this item

    Keywords

    labor market; great recession; types of workers; middle-income countries;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:41:y:2013:i:c:p:31-50. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.